Newsletter – 4th February 2019

Morning Bulletin


  • Sterling lost ground on the US dollar and euro on Friday.
    • GBP/EUR opened at 1.1447 and traded a high of 1.1458, a low of 1.1374 and closed at 1.1414 representing a 0.33% fall on the day.
    • GBP/USD opened at 1.3106, traded a high of 1.3114, a low of 1.3043 and closed at 1.3074 –  a 0.24% loss on the day.
  • PM Theresa May said she is ‘determined’ to deliver Brexit in March before heading to Brussels with a ‘fresh mandate, new ideas and renewed determination’.
  • May said she would seek a ‘pragmatic’ solution to a parliamentary impasse over the terms on which the UK leaves the EU.
  • Nissan confirmed that it will produce its new X-Trail in Japan despite it being originally planned for production in its Sunderland plant. The Japanese company have said that Brexit uncertainty is not helping firms to ‘plan for the future’.
  • Eurpzone CPI flash estimate y/y came in as expected at 1.4% and core CPI flash estimate came in slightly better than expected at 1.1% vs 1.0%.
  • US average hourly earnings m/m came in at 0.1% vs 0.3%, non-farm payrolls came in far better than expected at 304K vs 165K and the unemployment rate came in at 4.0% vs 3.9% expected.
  • Also from the US, ISM manufacturing PMI came in better than expected at 56.6 vs 54.1.
  • Australian building approvals m/m came in at -8.4% vs 2.1%.
  • GBP/AUD/ GBP/NZD and GBP/JPY are currently trading 1.8065 (+0.18%), 1.8950 (-0.09%) and 143.40 (0.13%), respectively.
  • The Alternative Arrangements Working Group, which includes Brexit secretary Stephen Barclay as well as Leave and Remain MPs will meet for the first time today to discuss alternative plans for the Irish backstop.
  • There is very little economic data on the calendar today.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1410 -0.06
GBP/USD 1.3060 -0.11
EUR/USD 1.1446 -0.06
AUD/USD 1.7230 -0.22

No economic data of note.